ZF was right: Investments of pension funds will be out in the open

The more than five million participants to the private pensions system will find out every six months where their money has been invested after the Private Pensions Supervisory Commission (CSSPP) has approved a norm whereby it forces fund managers to publish the detailed structure of their portfolio.

Market players say the new regulations will lead to increased confidence of clients in the private pensions system, but on the other hand expect the improved transparency to also come at a cost.

"Of course the new provisions increase the industry's level of transparency significantly, and are meant to strengthen confidence in the system of privately managed pensions. However, I don't think we can ignore the prospective negative side effects. I am talking about a potential focus across the entire system on certain types of investments and exposures (...)," believes Iulius Postolache, investment manager of Allianz-Ţiriac, the second-biggest private pensions manager.

Pension funds had up until now published only the structure of investments by types of instruments (T-bills, equity or bank deposits). Eureko is the first private pension manager who published the detailed structure of investments at the beginning of March.